Crypto Super PACs raise $102M to support crypto-friendly US candidates Crypto Super PACs raise $102M to support crypto-friendly US candidates
Over $50 million from Coinbase and Ripple boosts Crypto Super PACs' influence in US electoral politics.
2 min read
Updated: May. 7, 2024 at 10:28 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto Super PACs have amassed $102 million in funds ahead of the US elections to advocate for candidates supportive of the industry, according to a report by Public Citizen.
Approximately $54 million originates from direct corporate contributions, notably from industry giants Coinbase and Ripple Labs.
Individual contributions from crypto executives and venture capitalists also bolster this war chest, with notable amounts including $11 million from Andreessen Horowitz founders, $5 million from Gemini exchange founders Cameron and Tyler Winklevoss, and $1 million from Coinbase CEO Brian Armstrong.
However, these financial maneuvers have been accompanied by scrutiny, as four of the eight corporate donors are entangled in legal disputes with the US Securities and Exchange Commission (SEC) over alleged securities violations.
The Public Citizen’s report highlights the impact of crypto super PACs on primary elections, noting that of the six concluded races they intervened in, only one crypto-backed candidate faced defeat. Eleven primary contests featuring such candidates are ongoing, and plans are underway to allocate resources to general election Senate races in pivotal states like Ohio and Montana.
Armstrong pitches Robinhood
Meanwhile, Armstrong encouraged Robinhood to focus more on supporting pro-crypto candidates. He added that Coinbase does this through the crypto sector’s largest super PAC, Fairshake Political Action Committee, and StandWithCrypto.org.
On May 6, Robinhood revealed that the SEC served its crypto unit a Wells Notice. In response, Robinhood CEO Vlad Tenev criticized the financial regulator’s approach to the emerging industry, noting that it harms businesses and consumers.
He said:
“The SEC’s continued attack on crypto, coupled with recent rule proposals like the one related to predictive data analytics, mark yet another improper attempt by the administrative state to stifle innovation.”
The SEC’s scrutiny of Robinhood is a surprise, given the company’s track record of regulatory compliance. In 2023, Robinhood took Solana, Polygon, and Cardano off its listings after the SEC labeled them as securities in a legal dispute against other crypto firms.
Despite this, Robinhood has encountered obstacles in registering its crypto services with the SEC. The regulator’s argument hinges on cryptocurrencies being classified as securities, necessitating entities dealing with them to register as brokers and clearing agencies.
Nonetheless, Robinhood’s Chief Legal Officer, Dan Gallagher, vehemently contested that the cryptocurrencies on its platform qualify as securities.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Robinhood
Robinhood is an American financial services company headquartered in Menlo Park, California that was founded in April 2013 by Vladimir Tenev and Baiju Bhatt.
a16z
Andreessen Horowitz (known as “a16z”) is a venture capital firm in Silicon Valley specializing in investing in seed, start-ups, early, mid-stage, growth, and late stage.
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.
Cameron Winklevoss, a renowned figure in the cryptocurrency sector, is a Harvard University graduate with a degree in Economics and holds an MBA from Oxford University.
Tyler Winklevoss, known for his pioneering role in the cryptocurrency realm, is a Harvard University alumnus with a degree in Economics and holds an MBA from Oxford University.
